Grayscale, a leading American cryptocurrency investment firm, has expanded its range of spot Bitcoin exchange-traded products (ETPs) with the launch of the Grayscale Bitcoin Mini Trust. This “spin-off” of the Grayscale Bitcoin Trust ETF (GBTC) began trading on NYSE Arca on July 31, at 8 am UTC, under the ticker “BTC.”
About the Grayscale Bitcoin Mini Trust
The Grayscale Bitcoin Mini Trust represents a new investment product designed to provide easier access to Bitcoin through a regulated investment vehicle. It builds on the success of Grayscale’s initial spot Bitcoin ETF, launched in January 2024 following approval from the United States Securities and Exchange Commission (SEC). The Bitcoin Mini Trust was created by distributing 10% of GBTC’s underlying Bitcoin assets to the new trust, a process Grayscale refers to as “innovative mechanics of initial seeding.”
At its launch, the Grayscale Bitcoin Mini Trust has a net asset value per share of $5.84 and manages $1.7 billion in assets as of July 30. Notably, the trust is not registered under the Investment Company Act of 1940, distinguishing it from most mutual funds and exempting it from the associated regulations.
Also Read: Grayscale’s Bitcoin Mini Trust ETF Approved by SEC
Purpose and Features
The Grayscale Bitcoin Mini Trust aims to make Bitcoin more accessible to investors by offering a lower-cost entry point. David LaValle, Grayscale’s head of ETFs, emphasized that this new product seeks to reduce barriers to Bitcoin investment in an SEC-regulated format. John Hoffman, head of strategic partnerships at Grayscale, highlighted that the Bitcoin Mini Trust is the first “mini” Bitcoin ETP in the United States, providing a unique option for investors. The product offers built-in liquidity, a diversified shareholder base, and an accessible share price, making it an efficient tool for those looking to add Bitcoin exposure to their portfolios.
The Grayscale Bitcoin Mini Trust carries a fee of 0.15%, with additional brokerage fees and expenses potentially applicable.
Tax Considerations and Additional Information
Grayscale has indicated that the distribution event for the Grayscale Bitcoin Mini Trust is not expected to be a taxable event for GBTC or its shareholders as of the record date of July 30, 2024. However, investors are advised to consult a tax advisor for specific tax guidance.
